Free calculator · 2026/27 rates
Dividend Tax Calculator 2026/27
Dividend tax rates rose from 6 April 2026. Finance Act 2026 set the basic rate at 10.75% (up from 8.75%) and the higher rate at 35.75% (up from 33.75%), with the additional rate unchanged at 39.35%. Enter your dividend income and your other income (salary, pension, rental profit) and this calculator stacks everything across the bands, applies the £500 dividend allowance and the personal allowance taper above £100,000, and shows your 2026/27 bill next to what the same income would have cost in 2025/26.
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Dividend tax rates rose from 6 April 2026. Finance Act 2026 set the basic rate at 10.75% (up from 8.75%) and the higher rate at 35.75% (up from 33.75%), with the additional rate unchanged at 39.35%. Enter your dividend income and your other income (salary, pension, rental profit) and this calculator stacks everything across the bands, applies the £500 dividend allowance and the personal allowance taper above £100,000, and shows your 2026/27 bill next to what the same income would have cost in 2025/26.
Non-dividend income is taxed first, so it determines which bands your dividends fall into. Enter gross figures before tax.
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Dividend tax rates for 2026/27, and how the calculation works
For dividends received on or after 6 April 2026, Finance Act 2026 sets three rates: 10.75% at the basic rate (taxable income up to £37,700 after the personal allowance), 35.75% at the higher rate (up to £125,140 total income), and 39.35% at the additional rate above that. The first £500 of dividends is covered by the dividend allowance and taxed at 0%, although it still uses up band capacity. Your other income (salary, pension, rental profit) is taxed first, so dividends sit on top of it in the bands.
Worked example 1: a director takes a £12,570 salary and £30,000 in dividends. The salary uses the full personal allowance, £500 of dividends is covered by the allowance, and the remaining £29,500 all falls in the basic rate band. Tax at 10.75% is £3,171.25 for 2026/27. The same income in 2025/26 at 8.75% cost £2,581.25, so the new rates add £590.
Worked example 2: someone with £50,270 of salary and £40,000 of dividends. The salary fills the personal allowance and the entire basic rate band, so after the £500 allowance the remaining £39,500 of dividends is all taxed at the higher rate of 35.75%, giving £14,121.25. At the 2025/26 higher rate of 33.75% the bill was £13,331.25, an increase of £790.
Above £100,000 of total income the personal allowance tapers away at £1 for every £2 of income, disappearing entirely at £125,140. The calculator applies this automatically, which is why effective rates climb sharply in that range.
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